Any time your Grand Rapids business enters into a transaction or ongoing relationship with another party, there should be a formal contract that governs that relationship. Contracts lay out and clarify each party’s respective rights and obligations.
When preparing a contract, you’ll need to take steps to protect your business’s rights and interests while ensuring the terms comply with applicable laws and regulations so the contract will be enforceable. Working with an experienced Michigan business lawyer can help make the process of drafting a contract less stressful and confusing. Contact SBS Law PLC to arrange an initial case evaluation with a business agreements attorney serving Grand Rapids and Kalamazoo to discuss your legal options when preparing to draft a business contract.
Why Professional Contract Drafting Matters
Some Grand Rapids business owners and professionals may rely on online templates or DIY contract drafting programs to create agreements for their companies. However, drafting a contract without legal assistance may create various risks, such as:
- Vague or conflicting terms that may result in ambiguities that cause confusion and conflict between parties
- Missing essential terms, which may create loopholes or ambiguities that fail to address various contingencies
- Unenforceable provisions, including contract terms that violate applicable state law
- Failure to comply with legal requirements for creating an enforceable contract
Seeking professional guidance from a lawyer when negotiating and drafting a contract for your business can offer numerous benefits, including:
- Reduced litigation risk through having clear, enforceable contract terms so parties understand their rights and obligations
- Elimination of ambiguities to avoid misunderstandings between parties
- Predictable outcomes of contractual relationships
- Stronger business relationships, as clear, comprehensive agreements may enable parties to resolve disagreements swiftly and avoid animosity that comes from legal conflicts
Our Contract Drafting Services
Our Grand Rapids contract drafting attorneys at SBS Law PLC, our business lawyers in Grand Rapids assist Michigan companies and professionals with drafting, reviewing, and negotiating various kinds of commercial agreements, such as:
- Business formation and company governance agreements, including partnership agreements, operating agreements, shareholder agreements, and bylaws
- Commercial agreements, including services agreements, vendor/supplier contracts, sales/purchase agreements, distribution agreements, licensing agreements, and franchise agreements
- Mergers and acquisitions contracts, including letters of intent/memoranda of understanding, confidentiality agreements, stock/equity purchase agreements, and asset purchase agreements
- Contractor agreements
- Restrictive covenants, such as confidentiality/non-disclosure agreements, non-solicitation agreements, or non-compete agreements
- Real estate contracts, including commercial leases, purchase and sale agreements, easement/use agreements, property management contracts, and developer agreements
Contact our attorneys to discuss your business’s contract needs and learn how we can help you develop a thorough agreement that protects your company’s rights and interests.
Key Elements of a Well-Drafted Contract
Various provisions should be included in any comprehensive agreement that clearly outline the parties’ rights and responsibilities. Some of the primary elements of a well-drafted contract include:
- Precise definitions of essential terms, including terms used to refer to specific parties or other terms of art
- Contract duration or expiration date
- The scope of work, including the goods and services that represent the subject of the contract
- Contract price and payment terms, including conditions for payment, due dates, and acceptable payment methods
- Performance standards
- Deadlines, delivery terms, or performance milestones for extended projects
- Warranties, disclosures, and disclaimers
- Clarification or assignment of intellectual property rights
- Indemnification or limitations of liability, including allocation of liability, waivers of liability, or financial caps on liability
- Alternative dispute resolution procedures, such as mandatory mediation or arbitration
- Governing law and forum selection clauses
- Amendment procedures
- Renewal or termination rights and procedures
Michigan-Specific Considerations in Contract Drafting
In Michigan, an enforceable contract must have parties with legal capacity to enter into the agreement, mutual intent to enter into a contract, an offer of contract terms, an acceptance of that offer (without modifying the terms), and consideration (an exchange of something of value).
Parties in Michigan who draft an agreement or who select Michigan law to govern their contract must keep Michigan contract law in mind when negotiating terms and executing documents. For example, Michigan requires parties to put some types of contracts in writing, including:
- Contracts that parties cannot perform in less than one year
- Guarantees of debt
- Contracts for financial institutions to loan money, extend credit, or make financial accommodations, permit a delay in repayment or performance of a loan, or waive a provision of a loan
- Contracts for the purchase of goods valued at more than $1,000
Contracts for the sale of goods must also comply with Michigan’s Uniform Commercial Code, which governs aspects of such transactions, including offer, acceptance, performance, and revocation of acceptance and delivery.
How We Work with Clients During the Contract Drafting Process
When you turn to our Grand Rapids contract drafting attorneys for help drafting a contract, you can expect our Grand Rapids attorneys to work with you through each step of the process of forming an agreement, including:
- Initial consultations to assess your business goals and identify priorities for negotiations
- Review of existing agreements between you and your counterparties or past drafts of the current contract under negotiation
- Undertaking a collaborative drafting process that includes revisions and clarifications to ensure that the contract reflects your objective and understanding with your counterparty
- Focusing on including business-friendly yet straightforward language to minimize confusion or ambiguity
- Tailoring contract provisions to your business’s workflows and risk tolerance and to industry standards
- Assisting with executing agreements and advising you on post-signing matters, including safekeeping records and amending or renewing the contract
Contract Review and Negotiation Support
Our Michigan law firm also supports clients during the contract drafting process with review and negotiation services. When you and a counterparty already have a draft contract, our lawyers serving Kalamazoo and Grand Rapids can review it to ensure it serves and protects your interests and complies with applicable laws and regulations. Our attorneys can also represent you at the negotiating table to help you work with a counterparty to reach a fair and favorable agreement, providing a tailored legal strategy to ensure the contract meets your priorities.
Why Choose SBS Law PLC?
Negotiating a contract for your business’s operations can help protect your legal and financial interests, making legal counsel critical to ensuring you have a robust, clear agreement. Let a Michigan commercial agreements attorney from the Grand Rapids law firm of SBS Law PLC assist you with drafting a contract for your business because:
- At our law firm, you can expect our lawyers to take the time to discuss your situation and listen to your needs, concerns, and goals. We will ensure that our efforts focus on helping you secure an agreement that serves your interests and priorities.
- Our attorneys will provide you with honest advice and dedicated advocacy to negotiate a fair and favorable deal when entering into a contract.
- Our law firm provides every client with the personalized attention and dedicated support they deserve throughout a business transaction.
- Our lawyers can provide comprehensive, holistic counsel throughout contract negotiations to address the legal issues your deal may involve.
Contact Us Today for Help Forming a Contract for Your Michigan Business
Before you enter into an agreement on behalf of your Michigan business, you need experienced legal counsel to draft an enforceable contract that favors your interests. Contact our Grand Rapids contract drafting attorneys at SBS Law PLC today for a confidential consultation with a contracts lawyer from our law firm serving Grand Rapids and Kalamazoo to learn more about the contract drafting process. Let’s discuss how we can help you negotiate and draft an agreement that protects your interests and serves your company’s goals.
